Extending a lease: is this a rip-off?

[thepeopleversuswork]

I'm applying to extend the lease on my flat and the freeholder has quoted me just under £400 to pay a surveyor to establish what the cost is of extending the lease. Is this a rip-off?

How else are you going to agree a price if you haven’t had a professional value it for you..?

Personally, I would speak to other leaseholders and try and buy the freehold between you but it depends how many leaseholders there are

It’s a lot easier in a small block/converted house than in a huge new build development

Yep sounds about right. You are paying for a service after all.

extending the lease is going to cost tens of thousands, so the value has to be professionally assessed.

Seems reasonable. You should also get your own surveyor to do the same, unless you are competent in calculating the methodology yourself.

Don’t fall for the trap of a new 99 year lease - make sure you exercise your right to add 90 years to the lease. Costs more but is 100% worth it.

I'm about to start the lease extension process too and the local estate agent, who's flogged a few flats from my block that all had lease extensions done or under way, said I'd be looking at about £4k to £5k for total legal and valuing costs, so it's probably about right.

I had to extend the lease last year when I was selling my shared ownership house. It cost about £1700 to extend to 125 years

billybulshitter - did you go the informal route by approaching the leaseholder? Do you still have to pay ground round?

We paid £575 for the same, so I’d say £400 is ok.

That's probably less than the daily charge out rate for a professional surveyor so I'd say it's reasonable.

@northernstar0412 I have since sold the property but the new owners pay ground rent. The buyer's mortgage provider would not honour the mortgage without the lease extension.

You must get a competent leasehold specialist solicitor to check the new lease terms very carefully. Unscrupulous freeholders often sneak in new onerous terms, especially altering the existing ground rent. Your ground rent should revert to peppercorn when extending the lease so make sure it does!

[quote billybullshitterz1n]@northernstar0412 I have since sold the property but the new owners pay ground rent. The buyer's mortgage provider would not honour the mortgage without the lease extension. [/quote]
Sounds like you went the informal route. Well done for getting shot of it. I love my flat but wish I'd realised the pitfalls of leasehold before rushing into a purchase.